Essential Properties Realty Trust Inc 2025 Annual Report

Securities registered pursuant to Section12(b) of the Act: Indicate by check mark whether the registrant: (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject tosuch filing requirements for the past 90days.YesxNoo Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant toRule405 of RegulationS-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was requiredto submit such files).YesxNoo Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerginggrowth company” in Rule 12b-2 of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).Yes☐NoxAs of April 23, 2025, the registrant had197,512,316shares of common stock, $0.01 par value per share, outstanding. ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Balance Sheets(In thousands, except share and per share data) ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTS (Unaudited, in thousands, except share and per share data) ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Comprehensive Income ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Stockholders’ Equity ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Stockholders’ Equity (continued) ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Cash Flows ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Cash Flows (continued) ESSENTIAL PROPERTIES REALTY TRUST, INC.CONSOLIDATED FINANCIAL STATEMENTSNotes to Consolidated Financial Statements 1.Organization Description of Business Essential Properties Realty Trust, Inc. (the “Company”) is an internally managed real estate company that acquires, ownsand manages primarily single-tenant properties that are net leased on a long-term basis to middle-market companies operatingservice-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant The Company was organized on January 12, 2018 as a Maryland corporation. It elected to be taxed as a real estateinvestment trust (“REIT”) for federal income tax purposes beginning with the year ended December 31, 2018, and it believes that itscurrent organizational and operational status and intended distributions will allow it to continue to so qualify. Substantially all of the The common stock of the Company is listed on the New York Stock Exchange under the ticker symbol “EPRT”. 2.Summary of Significant Accounting Policies Basis of Accounting The accompanying unaudited consolidated financial statements of the Company are prepared in accordance withaccounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the U.S. Securities andExchange Commission (the “SEC”). In the opinion of management, all adjustments of a normal recurring nature necessary for a fair Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and subsidiaries in which theCompany has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.Asof March31, 2025 and December31, 2024, the Company, directly and indirectly, held a99.7% ownership interest in the Operating Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the Reportable Segments ASC Topic 280, Segment Reporting, establishes standards for the manner in which enterprises report information aboutoperating segments. Substantially all of the Company’s investments, at acquisition, are comprised of real estate owned and leasedto tenants on a long-term basis and loans and direct financing lease receivables secured by real estate. Therefore, the Company Table of Contents determines resource allocations based on characteristics of potential future investments (e.g., return on investment, tenant creditquality, industry type, and geographic location) and assesses the performance of the Company's existing portfolio based onconsolidated net income